Ethereum price: Why did Ethereum plummet? Will it return today?

Ethereum price: Why did Ethereum plummet? Will it return today?

(ETH) deprecated by more than 44 percent since the start of March, indicating a downward trend of bearish performance.

The token struck out at rock bottom on March 18, breaking below the £357.10 ($500) mark for the first time since December 2017.

At 2pm GMT, the second biggest cryptocurrency by market capitalisation is exchanging hands for £385.55 ($539.84) per token, according to CoinDesk.

The token has so far bounced back somewhat on its Sunday low, opening on Tuesday at £397.62 ($556.73), but not enough to mark any significant bullish upheaval.

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Now according to CoinDesk contributor Omkar Godbole, ETH’s mostly decline has pushed the token’s “long-term price floor” down to a low £214.26 ($300) – prices not seen since October 2017.

He said: “Stepping back, ether's sharp reversal from the February 6 low of $555 (prices as per Coinbase) and the rally to near $1,000 in the subsequent days meant the had established a strong price floor below $600.

“That now looks to have been pushed down.”

He added: “So, ETH will likely find acceptance below $546 (61.8 percent Fibonacci retracement of December 2016 to January 2018 rally) and extend the drop to $300 (78.6 percent Fibonacci retracement) over the next couple of months.”

Ethereum token price news: CoinDesk chartCOINDESK•GETTY

Ethereum price news: The ETH token has been falling since January

Ethereum prices have been on a downward trend since the start of the year, in line with bitcoin’s similar downturn for the worse.

Both cryptocurrencies briefly but spectacularly spiked around the new year, proving their volatility was too unstable to support the inflated prices.

So, ETH will likely find acceptance below $546 and extend the drop to $300

Omkar Godbole, CoinDesk

Bitcoin shot up to £14,284 ($20,000) per token mid-December and Ethereum rose to around £1,000.41 ($1,400) at the start of January. Both tokens promptly collapsed in value.

However Ethereum co-founder Joseph Lubin argued against the notion the token’s so-called “bubble” had burst or that the market had failed.

Mr Lubin said: “It may be hard to tell because we’re so focused on ethereum, we’re so focused on building decentralised applications on the ethereum platform and we’re so much less focussed on cryptocurrencies like .

Cryptocurrency price: A year in chartsMon, March 12, 2018Compare crypto currencies (Ripple, Bitcoin, Ethereum, LiteCoin) on value, market cap and supply for the past year
LiteCoin is going down with the market dip

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LiteCoin is going down with the market dip

“But I would argue that we’ve seen a correction in our space, calling it a bubble to have been popped is a little bit shortsighted.”

It appears to be that cryptocurrency prices are heavily swayed by the quietest of rumours and threats of outside regulation.

Last week digital currencies took a hit after Google announced it would be banning all cryptocurrency and initial coin offering (ICO) advertising in a bid to curb online scams.

Prior to that, prices stumbled after reports India’s Finance Minimiser Arun Jaitley was cracking down on cryptocurrency trade.

The markets reacted similarly to news South Korea was cracking down on illegitimate crypto trade, and the US Securities Exchange Commission’s decision to regulate crypto exchanges was met with a trade pull back as well.

Ethereum price news: ETH price chartCOINDESK

Ethereum price chart: The token attempt6ed to claw back some losses sustained over the weekend

Ethereum price news: ETCH CoinDesk price chartCOINDESK

Ethereum price chart: ETH spiked to its all time high in January this year

However Mr Lubin argued overall, the increased pressure of regulation from governments and finance institutions if a force for good.

He said: “We are extremely happy about how things are going with regulators.

“There are many jurisdictions that are excited about the tokenised security of the utility tokens that wouldn’t be considered securities.

“That’s actually true in this country as well, in the United States.”

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